Friday, February 7, 2014

TV is Turning Out to be Quite a Srtategic Asset for Telcos

There's a good reason why Vodafone bought Kabel Deutschland, and might be considering additional purchases of video subscription service assets in the United Kingdom: video services are among the areas where telco market share is growing.

And while profit margins at smaller providers will be slim to non-existent, larger telcos likely are seeing profit margins in the 20-percent range. 

Video also has emerged as a core application complementing a broadband access service. According to Bernstein Research, where U.S. cable TV and satellite TV providers are losing customers, U.S. telcos are gaining them.

BII_PayTVSubs_2


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